U.S. Stocks Sink More Than 2 Percent On Bad Manufacturing Data

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New York (AFP) – U.S. stocks Monday fell more than two percent after a surprisingly weak US manufacturing report sparked another round of selling amid concerns about the strength of the global economy.

“This is the beginning of the correction that we have been waiting for,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

The sell-off came after a report showing U.S. manufacturing sector growth slowed sharply in January. The Institute for Supply Management’s purchasing managers index sank to 51.3 from 56.5 in December, not far above the 50 level between expansion and contraction.

Cardillo said economic data “are certainly not good,” but noted that some of the weakness could be attributed to extremely cold weather that depressed consumption and other activity.

Scott Wren, senior equity strategist, said a stocks correction was inevitable after investors excessively bid up stocks in late 2013 on improving economic data.